multiple percent per day, alleged to be Forex trading

Over and over again HYIP’s pop up, claiming to be generating revenue with YOUR money trading Forex. At the same time promising, and in the beginning actually paying, absurd daily percentages of 2, 3, 4% and more.

Simply logics, common sense and maths will proof to you this is all coming from a very big thumb, appealing to those in desperate search of money.

Let’s have a closer look at why HYIP’s based on Forex are BS.

If 2% to be made per day, that would mean 40% per month.
This also means that a trader needs to make MORE than this 40%, he needs to have an income as well, right?

Successful traders who trade with other peoples money in general will take a performance fee, 30% per month is not unusual.

Now, let’s assume you’ve funded your account with $5,000 and this phenomenal trader would make about 50% in one month, $2,500….still with me?

A trader in a HYIP would then pay out $2,250 and would have made $250

A real PAMM trader would have taken 30% and made $750. The pay out would be $2,500 minus $750 = $1,750.

So far clear, right?

Now, imagine that this HYIP trader would start doing what he says, people will promote like crazy and millions are invested.

For the sake of simplicity let’s assume a total of 2 million is invested and in a month the realized profits amount to 25%, as in Forex there is nu such thing as fixed percentages per month.
The fixed payout is still 40%, the reason why people put in their hard earned cash.

This means this ‘saint’ will have to pay 15% out of the available trading balance, in order to meet the pay out, in this case $300k. Which is less money to trade with in the next month.

What is standard practice in these HYIP’s, is that you will never see proven trading results, some percentages are stated on a website, an excel sheet is presented as being a truthful reflection of trading results….you will NEVER see an actual trading account that is linked to something like MyFXbook, which would be a real proof of gained results, showing the max draw-down and what risk has been taken with your money.

With an amount of $2 million, a professional trader can easily make $60,000 a month. They will NEVER guarantee to make $800k a month! It just is not realistic!

HYIP’s are never ran by honest people, but by people who are after one thing only: your money.
When the influx of new investors slows down, you will see these things occurring:
claimed payment processor issues, reason why they can’t pay out at the moment, or a restructuring of a comp plan, maintenance on the website….everything that you can come up with to keep people believing they will make these exorbitant amounts until they can retire……until it goes black and stays black.

Forex DOES offer passive income opportunities.

So….be alert, don’t even START to believe the fixed rates per day whenever the source is claimed to be Forex, it just does not exist!